Samsung to invest $4B in Austin plant

SEOUL, South Korea (AP/KXAN) — Samsung Electronics co. will spend $4 billion renovating its plant in the U.S. to increase production of advanced chips used in smartphones and tablet computers.

Samsung's Tuesday announcement is its latest push into the lucrative logic chip business. In June, Samsung said it would spend nearly $2 billion to build a new production line in South Korea to ramp up mobile chips that work as a brain in smartphones and tablet computers.

The South Korean company said mass production in the Austin, Texas plant will start in the second half of next year. The U.S. plant also produces chips for Apple's iPhone and iPad.

Samsung is the world's largest maker of computer memory chips but is trying to reduce its exposure to the cyclical downturn of the memory chip industry.

Often likened to California's Silicon Valley, the Texas capital city is a fertile ground for tech companies. It continues to be a mecca for software developers.

New products are constantly being introduced in the market, including some that promise to make a big splash. Pick a problem, and chances are someone in Austin is working on a way to meet that challenge.

And while there is no doubt Silicon Valley is the leading high-tech hub in the country, many leaders in Austin's tech community want to see the industry grow. And they believe Dr. Robert Metcalfe , University of Texas professor of innovation, is kick-starting the process.

Metcalfe is considered an icon of entrepreneurial engineering and is the inventor of today's local-area networking standard, Ethernet.

In November 2010, UT selected Metcalfe to lead innovation initiatives at the Cockrell School of Engineering. He started his appointment at the beginning of 2011.

One of Metcalfe's first initiatives was to start a class for undergraduates who are starting companies.

Austin's fast growth

Austin is the second fastest-growing area in the country, according new U.S. Census Bureau data.

• Timeline: Austin's evolving plan for growth

From April 2010 to July 2011, the Austin area grew by 67,230 people -- the 10th highest in the nation.

The population of the Austin metropolitan area -- including Travis, Williamson, Hays, Bastrop and Caldwell counties -- as of July 2011 is 1,783,519.

Meanwhile, Austin vaulted past San Francisco.

It zoomed ahead to become the 13th largest city in the nation, according to the latest Census figures.

And Texas' capital city may not stay long in the Lucky 13 spot.

"Austin is nipping at the heals of Jacksonville, Fla., and Indianapolis," the city city said in a news release. "But is unlikely to break the Top 10 largest cities, when it butts up to San Jose's 967,487 people."

The city, which now has 820,611 people, has been steadily climbing the population ladder. Just six years ago, Austin was the nation's 16th largest city.

Census data

First Metro/Micro Area and County Population Estimates Since 2010 Census

Among the 50 fastest-growing metro areas over the last decade, only 24 of them were also among the 50 fastest growing since the 2010 Census. This is according to the first set of U.S. Census Bureau metropolitan statistical area, micropolitan statistical area and county population estimates to be published since the official 2010 Census population counts were released a year ago.